Five Nobel Prize-Winning Economists Tell Congress To Oppose The Balanced Budget Amendment

A group of notable economists, led by five Nobel Prize winners, sent letters to President Obama and congressional leaders Tuesday expressing their opposition to a Balanced Budget Amendment, which the House is scheduled to vote on this afternoon. “A balanced budget amendment would mandate perverse actions in the face of recessions,” they wrote, adding that the BBA would prevent federal borrowing to finance vital investments into infrastructure, education, environmental preservation and other areas “vital to the nation’s future well-being.” “It is dangerous to try to balance the budget too quickly in today’s economy,” they wrote. “The large spending cuts and/or tax increases that would be needed to do so would greatly damage an already-weak recovery.” In June, 248 economists signed a letter urging Congress to pass a clean, immediate hike in the debt ceiling.